| Comment | Mortgage underwriter here- you are right that a lot of lenders won't lend on a property like this. They view it as a risky security (if you default it may be hard for them to resell the property and get their money back), some won't lend at all, some will require a lower LTV.
That being said, there will be a bank out there who will lend on it but rates may be a bit higher. The way I see it (this is personal opinion only, I'm not an advisor!) is it depends on how you view this property. Do you absolutely love it, it suits your needs and you fully see yourself living there long term? Then it may be worth the risk. If not, your concerns about resale value and having trouble remortgaging in the future may need to be considered further (are properties in the area selling well? Similar flats above retail premises selling quickly?) |
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